MFA submitted a comment letter to the Securities and Exchange Commission (SEC) in response to its proposed rule on beneficial ownership reporting. In the letter, MFA explains that:
- The Commission’s proposed rule will harm activist investors’ ability to hold corporate management accountable.
- The unintended consequences of shortening the filing deadline for Schedule 13Ds and 13Gs outweigh any benefits.
- The Commission’s proposed change to the definition of “group” will chill investor communications and undermine investor engagement crucial to the market.
- The Commission should reconsider the proposal to expand beneficial ownership to include cash-settled derivatives.